THIRD PARTY RISK

Hokitika Guardian, 31 January 1929, Page 7

THIRD PARTY RISK

COMI’ITLSOKY INSURANCE FOB CAB-OWN LBS.

DJiATII STATISTICS FBO.M MOTOB

ACCIDENTS

When motor-car owners proceed to renew their driver’s licenses on June •! they will be asked to pay (be usual lee, plus £l. This Cl is the premium for a- compulsory insurance policy, which is to cover the risk of accident to “ the other fellow ’’ —the man, woman, or child whom the driver may inadvertently kill or maim. When the .Cl is paid the owner will he asked to nominate his insurance company, and the money will, in duo course, he handed over to that company, with the intimation of the car owner’s name and address, whereupon the company becomes liable for any “ personal ’’ dam age done, by the policy holder. This does not cover any damgo to his own or another mail’s car by the accident —it is only a cover for damage done to the person of the third party. Asked by a “ Dominion ’’ reporter whether the £1 would he sufficient to cover such a risk, a well-known insurance man replied: “We don’t know. The thing has yet to he tried out, and if it is found to he inadequate it will have to he readjusted. That’s all about it. At present most of us are inclined to think that the amount is too small, and we base that view on certain known statistics of people killed or injured in motor accidents, that is, nc-'i dents when a car gets into trouble by itself or with another. Take, for example, the average number of people killed in motor accidents in New Zealand. Here they are: Killed. 192-1 91 192-0 ... 10K 192(1 MS 1927 198 “ You can sec for yoursell that as the number of ears on the road increases, so will the number of deaths by accident in them increase. Of course a claim could only be sustained where legal liability is established, hut assuming that is the ease in JO per rent of the deaths in 1927, and averaging each one at £ISOO. it ran be seen that the companies would have to pay out something like £90.000. Now, there are only about 190,090 private ear owners in New Zealand, and LOO,OOO makes a big hole in £190,000. But the companies’ liability does not cease on the payment of claims for death. That is only the beginning. There are all those who are more or less seriously injured—a small army on present-day statistics—and after flint again there may lie a myriad minor claims lor shocks, bruises, torn dresses, and damaged hats. So it can he seen to what extent the £1 premium is likely to cover the liabilities of the companies under the new Act. We shall probably know a little more about it at this time next, year.”

In the above statistics referring to deaths from motor accidents, no cognisance is taken of level-crossing accidents, when cars are hit by railway trains (of which there are a few in New Zealand). Those arc dealt with under the heading “railway accidents.”